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Internet Edition, Aug. 25, 2004, Page 1

OGILVY PUSHES
MEDICARE RX CARD.
Ogilvy PR Worldwide's Washington, D.C., office is recruiting third parties for the Centers for Medicare & Medicaid Services to foster support for the Bush Administration's new drug discount card among low-income populations.

The firm is under contract through March 2005 to tout the program among that demographic nationally with outreach programs via community groups like senior centers, said VP Joel Hochanadel.

He declined to give a PR budget figure but noted Ogilvy is overseeing $3.7 million in grants for groups to educate and promote the discount cards in their communities.

The firm is currently collecting applications for grants of up to $15,000 apiece for groups to tell their members about the program. Ogilvy will train the groups that are deemed eligible in September to go out and talk to seniors.

Ogilvy, Ketchum, American Education Development and GCI Group won status as the Medicare agency's preferred firms in 2001, and the entity only hears pitches from them through 2006 under government RFP rules.

GCS, NEW WEST
LAND AIRPORT JOB.

The San Diego Regional Airport Authority has awarded a $2.25 million public outreach contract to a team led by hometown Gable-Cook-Schmid PR and New West PR in Louisville, Ky.

San Diego International Airport is expected to begin reaching capacity constraints in '15. The Authority wants its new PR team to educate the public about the need for a new facility, and inform it about possible sites for a new airport. Voters are to choose among site options in the `06 election. It will take up to 15 years to plan and build a new facility.

Seventy Firms Invited to Pitch

The Authority issued RFPs to 70 PR firms. Those pitching the account included Burson-Marsteller, Porter Novelli, Xenophon Strategies and Consensus Planning Group. GCS/NW beat the finalist team of Katz and Assocs., a PA firm, and Tom Shephard & Assocs., PA/lobbyist.

GCS has extensive roots in the community, and has handled infrastructure projects, such as the extension of the San Diego Trolley. NW handled PR for the $1 billion expansion of the Louisville Airport.

WPP POSTS 11% PROFIT HIKE.
WPP Group recorded a 11 percent hike in first-half net income to $193 million, and a bullish CEO Martin Sorrell predicts `04 growth could surpass the heady days of the dot-com era. First-half revenue was up six percent to $3.7 billion.

Despite the upbeat performance, Sorrell remains cautious about WPP's outlook. He sees the U.S. presidential election as a watershed event because the winner will have to deal with a substantial deficit, weak dollar and high oil and commodity prices.

Sorrell talks about an economic squeeze on "transatlantic" consumers, saddled with stagnant wages, record debt and rising housing prices.

PR, which accounts for 10 percent of WPP's revenues, was up seven percent for the period. Burson-Marsteller, Ogilvy PR Worldwide, Cohn & Wolfe and Hill & Knowlton are WPP's PR flagships.

MS&L, B-M, DeVRIES
VIE FOR OLD NAVY.

Manning, Selvage & Lee, Burson-Marsteller and incumbent DeVries PR are finalists in the Old Navy review that is being conducted by Select Resources International in Los Angeles. DeVries, which is owned by Interpublic, has had the account since `99. Old Navy, which has more than 800 stores, is a unit of The Gap.

GCI Group has appointed Jennifer Cohan -- who was Cohn & Wolfe's London deputy managing director -- president of its New York office. She will oversee business development and marketing initiatives.

Cohan spent ten years at C&W, including a stint as VP of the firm's consumer practice in New York working for the United States Postal Service, Avon and Procter & Gamble Fine Fragrances.

O'DWYER'S COVERS 'MARCOM.'
The O Dwyer newsletter and website, which have specialized in covering "PR" news, are also now covering marketing communications.

Firms that handle marketing communications, as well as traditional PR, are being sought for the new O Dwyer's Directory of Marketing Communications Firms.
Listings will appear first on the O Dwyer website and later in a printed directory.

Jack O Dwyer, editor-in-chief, said the new directory "answers a fact of marketing life."
(Continued on page 7)


Internet Edition, Aug. 25, 2004, Page 2
   

PROPAGANDA IS HEADED
IN RIGHT DIRECTION.

The U.S. has 30 public diplomacy officers in Iraq who are working to increase understanding of American values, policies and initiatives, said Patricia Harrison to the House Committee on International Relations on Aug. 19.

PD efforts, in the wake of 9/11, shifted from communicating to foreign elites to "youth influencers" including clerics, teachers, coaches and parents. The State Dept. has produced a stream of print and electronic materials describing the "events of 9/11 and the need to fight against those who have committed or wish to commit terrorist acts, as well as the achievements made in that struggle, particularly in Afghanistan and Iraq," said the assistant secretary of state for educational and cultural affairs.

Harrison was asked to testify on the recommendations of the National Commission on Terrorist Attacks Upon the U.S. That 9/11 panel recommended that U.S. propaganda efforts present an "Agenda of Opportunity" based on education and economic development to the Arab and Muslim worlds.

Harrison said U.S. PD efforts are focused in that direction, "but this is not the work of weeks or months. It is the work of years and generations."

Fair and Balanced

Harrison said State is working with Arab and Muslim journalists to produce balanced reports and documentaries on political and cultural topics. "We continue to produce ‘good news stories on reconstruction in Iraq and Afghanistan that American and foreign news editors have incorporated in their programs," she said.

The U.S. has purchased re-broadcast rights to over 100 commercial documentaries, including "Searching for the Roots of 9/11 with Thomas Friedman" (of The New York Times) and "Frontline: Muslims."

She mentioned various PD efforts, such as setting up a sister city program with Iraq, supporting the Iraqi National Symphony at Kennedy Center and working with the Wheelchair Foundation to donate thousands of wheelchairs to Iraq, Morocco, Jordan, Oman and other areas of the Arab world.

SAUDIS RUN RADIO ADS.
Saudi Arabia is running radio ads in 19 cities through Sept. 6 to counter the notion that it coddles terrorists. The ads are pegged to the 9/11 Commission finding that there was no evidence that the Saudi government supported Al-Qaeda. The panel also concluded that the Saudis–including members of Osama bin Laden's family who fled the U.S. in the aftermath of Sept. 11—had no links to terrorists.

The ad campaign's goal, according to a statement from Prince Saud Al-Faisal, the Kingdom's Minister of Foreign Affairs, is to "put to rest the false accusations that have cast fear and doubt over Saudi Arabia. For too long, Saudi Arabia stood morbidly accused of funding and support in terrorism," he added.

The ads will run in cities such as Chicago, Dallas, St. Louis, Seattle and Washington, D.C.

Fifteen of the 19 9/11 hijackers were from Saudi Arabia. The Commission didn t exactly give Saudi Arabia a big pat on the back for its role in countering terrorism. It called the Saudis a "problematic ally in combating Islamic extremism."
Qorvis Comms. is Saudi Arabia's PR firm.

ATKINS PICKS JEFFREY.
Atkins Nutritionals has hired The Jeffrey Group to spearhead its marketing push into Latin America, Richard Rothstein, VP-corporate communications at the "controlled-carbohydrate lifestyle" company, told O Dwyer's . "I ve known Jeff for many years and appreciate his intelligence," he added, in referring to TJG CEO Jeff Sharlach.

The firm edged four others because it boasted the "most impressive network and comprehensive experience" in Latin America, said Rothstein. TJG currently handles American Express, FedEx, Kodak, British Airways and Sony Ericsson.

The Miami-based marketing communications firm is expected to face challenges in pitching the Atkins way to nations where tortillas and rice are part of the national food culture. Sharlach, via health education programs, grassroots development and various media relations, plans to drive the sale of Atkins convenience foods, supplements and snacks.

The focus will be on how Atkins products fight obesity and diabetes.

Rothstein had handled PR for Atkins when he headed Williams Whittle Rothstein, which was folded into the Ronkonkoma, N.Y.-based company in April.

Rothstein said his firm had functioned as Atkins corporate communications department for six years.

WEISER JOINS WEISSCOMM.
Diane Weiser, who headed Ketchum's west coast healthcare practice, has joined San Francisco-based WeissComm Partners as COO. She had headed key Ketchum accounts, such as Pfizer's Lipitor and Genentech's Avastin. The Food and Drug Administration ruled Aug. 12 that Avastin, which treats colon cancer, may increase the risk of stroke or heart attack.

Weiser, who joined Ketchum in `99, also worked at Makovsky & Co. and Burson-Marsteller.

Jim Weiss is founder of WeissComm Partners, which handles biotech, pharmaceutical and medical device/diagnostic companies. He formerly handled worldwide products communications for Rhone-Poulenc (now Aventis).

GERRITY TO THE BARRICADES.
Edward "Ned" Gerrity, head of PR for ITT from 1964 to 1985, is leading a protest of members at the Winged Foot Golf Club in Mamaroneck, N.Y., which is the site of this year's U.S. Amateur tournament.

Gerrity said members like him are fed up with the poor treatment they are getting from the people running the tournament, and the overcrowded courses, locker rooms and excessive number of guests.


Internet Edition, Aug. 25, 2004, Page 3
   
MEDIA NEWS/JERRY WALKER
    

JOURNALISTS PREFER
E-MAIL — SURVEY.

Fifty-eight percent of the journalists in Bennett & Co.'s media survey said they prefer to get information from publicists by e-mail. Twenty-five percent of the journalists prefer to get mail, followed by fax (16%), wire service (12%) and phone (11%).

Snail mail fell behind e-mail in 2001 as the number one preference.

Seven out of 10 of the journalists said they read every e-mail they get except for obvious spam; 23% of the journalists read e-mail with compelling subject lines, and the remaining eight percent read only e-mail messages from senders they know.

Kristen Stieffel, a news assistant for The Orlando (Fla.) Business Journal, who reads every e-mail, said she "looks at the ones with good subject lines first."

Over 400 Responded

Laura Bennett, whose PR firm in Altamonte Springs, Fla., has been conducting the annual study since 1990, said this year's survey reflects media preferences from more than 400 journalists nationwide, including USA Today, Los Angeles Times, Better Homes & Gardens, NBC, ABC, CBS and Fox news affiliates, as well as staffers on daily and community newspapers, trade publications, consumer magazines writers and radio outlets.

Bennett noted 81% of the journalists had responded to the survey via e-mail or by accesssing the survey online, but 65% of those who got the survey via e-mail did not even open it.

Another finding she found "surprising" was 34% of the journalists said they do not care if information is presented in AP Style.

Twenty-one percent of the journalists said weekend, night and cell phone numbers on news releases were not necessary, down from 44% in 1990. Thirty-six percent said the numbers were either "extremely important" or "somewhat important."

Be Ready to Talk

Jim Bodor, a business reporter for The Worcester (Mass.) Telegram & Gazette, told Bennett publicists should make sure the contact person on a release is actually in the office and ready and authorized to talk on the day a release is issued.

While 68% of the journalists indicated they depend on PR firms for story ideas and content, 62% said PR materials only account for one to 10% of their story content.

Bill Belcher, who writes for The Los Angeles Times, often finds PR firms are most helpful to him in suggesting stories and setting up access for a feature as opposed to expecting him to use a release.

The majority of the journalists (61%) do not believe PR firms are getting more credible, while 39% believe they are, an 11% increase from 2002.
Just over half (51%) of the journalists believe the main objective of a PR firm is to create or enhance the image of a client.

'OLD SCHOOL' PRO
RAPS NEW BREED.

Al Vinikour, who runs Vinikour Communications in Brownstown Township, Wisc., finds it "unconscionable" and "disgusting" that PR people are not returning reporters phone calls.
"It's disgusting to see how much professional courtesy has taken a back seat to `self importance, " Vinikour, who has been in the communications field since 1968, said in response to a column in the July issue of O'Dwyer's PR Services Report, where Margie Goldsmith, a travel writer, berated PR practitioners who don t return her phone calls in a timely manner.

Vinikour, who spent his adult life centered around the aerospace, aviation, defense and auto industries, said he comes from the "old school that states you do not go home at the end of the day until all correspondence (like e-mails) and phone calls are responded to.

"In their heyday you could count on one hand how many calls were not returned annually," he said.
"Today's agency PR people have assumed the role of industry PR representatives, and apparently feel that sampling the new latte from Starbucks takes precedence over doing their jobs for their employers," he told Goldsmith.

"Gone are the old-time professionals and taking their places are individuals who clone themselves for dissemination in corporate America. After a few decades of this inbreeding, you encounter PR insanity," said Vinikour.

Reuters is cutting about 20 editorial positions in its London and New York offices, while hiring about 60 replacements in Bangalore, India.

The new employees, who will be paid less, will handle basic newsgathering, such as culling information from corporate news releases and earnings statements; creating tables and graphics, and polling managers and investors.

PEOPLE
Tammy Siu, previously beauty editor at Teen People, has joined Us Weekly in the same position.

Marcia Cole, formerly executive editor of Heart & Soul, was named deputy editor for lifestyle and features at Suede.

Gigi Schanen, previously the fashion editor at Seventeen, was named senior style editor at Cargo.

Jessica Coen was named editor of Gawker.com, replacing Choire Sicha, who becomes editorial director of Gawker Media.

Lucy Maher, formerly a features editor at People.com, has joined Ladies Home Journal as a senior editor.

Sari Harrar has resigned as senior health editor at Prevention magazine to do freelance writing.
(Media news continued on next page)


Internet Edition, Aug. 25, 2004, Page 4
   
MEDIA NEWS/JERRY WALKER
   

TV NETWORK TO COVER
BUSH CAMPAIGN.

The U Network, a new TV network that will make its debut on college campuses this September, will provide extensive coverage of the Bush-Cheney campaign.

The Leesburg, Va., and Muncie, Ind.-based network will assign student reporters and camera crews to cover events on the campaign for a weekly show, called "W." The show will also feature interviews with campaign staffers.

Shane Walker, founder/CEO of the network, said "W" aims to give the 20 million American college students a close-up, inside look of an actual presidential campaign.

"This show will strive to deliver an unbiased view of a President's plans for the future. Other student-oriented outlets make little or no effort to do that," said Walker.

L.A. TIMES NAMES
EDITORIAL PAGE EDITOR.

Andres Martinez, an assistant editorial page editor at The New York Times, is joining The Los Angeles Times as editor of the editorial page.

Martinez, 38, who will handle the daily editorial page starting in September, had been an editorial writer at The Pittsburgh Post-Gazette and a reporter at The Wall Street Journal, before joining the N.Y. Times, where he has written editorials for the last four years.

CASSIDY JOINS REIMAN
AS ED-IN-CHIEF.

Catherine Cassidy, former editor-in-chief of Prevention magazine, was named editor-in-chief of Reiman Publications in Greendale, Wisc.

Cassidy will oversee all of Reiman's written and graphic content appearing in 12 magazines, plus 25 hardcover books, 30 newsstand specials and 15 wall calendars published annually.

She will also spearhead development of new publications. In the past year, Reiman has started Backyard Living ; contributed to the development of Our Canada, and is testing several new magazine concepts.

Cassidy had worked at Rodale with Barbara Newton, who is president of Reiman, which has been operating as a unit of Reader's Digest Assn. since 2002.

PRIMEDIA GIVES UP
TWO MAGAZINES.

Primedia has turned over control of Folio and Circulation Management to Red 7 Media, a privately held group whose other magazines include Event Marketer and M10.

Tony Silber, a former editor-in-chief and publisher of Folio, will run the group.

Several staffers at Folio were let go, including Pam Block, managing editor, and senior editors Sam Posnock, Mich Rovner, and Rachel Lehman-Haupt.

Geoff Lewis, who was editorial director of Folio and CM, will remain at Primedia where he will be group editorial director for financial services.

MAGAZINE IS FOR
THE DOGS (OWNERS).

Dublin-based publishers Michael O Doherty and John Ryan, who collaborated on VIP, a successful magazine about Irish celebrities, are planning to start publishing The New York Dog this fall.

The New York Times said the bimonthly magazine will target dog owners in Manhattan with articles such as how to keep a dog in a custody battle, "The 10 Best Walks in Manhattan," plus photo shoots illustrating dog haute couture, dog horoscopes, obituaries, dieting tips and pop psychology advice for dogs.

Jimmy Breslin, who reportedly does not like dogs, will write a column called "The Back Yard."
Leslie Padgett, who is editor of NYD, will have an office in New York.

The phone company provides a number for a company called New York Dog, which makes dog accessories. A person answering the phone said they will try to get the owners to change the name of the magazine.

MEDIA BRIEFS
Philadelphia Cuisine will publish its first issue this October.

Richard Marx, a Philadelphia native who has been involved with specialized national and international publications for more than 20 years, will publish the annual magazine. It is affiliated with Cuisine Publications, which started Phoenix Cuisine 16 years ago and has since expanded into 18 cities.

Marx can be reached at 610/649-0898.

Applied Neurology will be published for the first time in January by CMP Healthcare Media in San Francisco, which is starting a neurology publication to offer a practice-focused publication.

The magazine will feature staff and clinician-written content with a focus on clinical medicine, including reviews of scientific research, professional development and practice recommendations, news and meeting coverage, and case studies.

Buzz is the title of the Univ. of Missouri-Columbia PR Club's new monthly magazine for PR students, recent graduates, and educators. It will be distributed via e-mail to subscribers.

Heather Pugh, who is president of the PR Club, is editor of the national magazine.

Us Weekly has increased its frequency to 52 issues, and cancelled the Christmas/New Year double issue.

JUST PUBLISHED: "Spinning the Bottle: Case Histories, Tactics and Stories of Wine PR," by Harvey Posert and Paul Franson (HPPR, St. Helena, Calif., 224 pages, $39.95) ... "My 20 Years Running the National Enquirer," by Ian Calder (Miramax, 314 pages, $24.95) ... "The Complete Guide to Book Publicity" (Second Edition), by Jodee Blanco (Allworth Press, 304 pages, $19.95).


Internet Edition, Aug. 25, 2004, Page 7
 

O'DWYER'S COVERS MARCOM
(continued from one)

"Marketing communications is in more demand today than traditional PR or advertising," he said.
PR is often seen as a narrow set of skills involving mostly press relations and the title has just about disappeared from corporate life, he added.

Only seven of the 197 blue-chip corporate executives in PR Seminar use "PR" in their titles, he noted.

The nine groups in the "Universal Accreditation" program, finding that not enough members have "PR" in their titles or backgrounds, now allow anyone with related experience to take the test.

Membership in the groups totals 27,500.

Eight of the groups, with 7,700 members, have already dropped the "five years of PR experience" rule for applicants. PRSA, with 19,800 members, is scheduled to drop that rule in October.

This shows how rare is the use of "PR" on the client side, said O Dwyer. "It's time for PR firms to get on the same page as their clients," he added.

Marcom, he said, includes a broad range of sales and marketing activities.

"Attention," the marcom firm profiled in the following story, is an example of such a firm, he said.

PR FIRM SWITCHES TO MARCOM.
Daryl Toor, former director of internet marketing and North American PR director of Sony/Ericsson, has renamed his Atlanta firm "Attention."

"Our clients keep saying that's what we've done the most for them," said Toor, who founded a PR firm in 2000 called Precision Communications.

He expanded services into other marketing disciplines because he said clients felt he could offer more visibility at lower cost than traditional advertising or PR agencies.

His firm added "Targeted Article Placement," "Executive Visibility Program," "Pay Per Clip" pay for performance PR program, "TradeShowStoppers," "Weblicity Search Engine Marketing," "MercuryMessages" e-mail marketing, direct mail programs, and website design.

"Attention" uses a "virtual network of marketing specialists" with more than 60 years of experience.
"We have the resources of a larger agency without having to pay for the conference room view of the skyline," said Toor.

Clients Want `Full Partners'

"Clients want to see that you are willing to do whatever it takes, learn every possible inch of their industry, and be right there with them as they grow, expand or launch a new product in an unproven territory," he added.

"They want loyalty and cost-efficiency. Supporting those needs, while working in full partnership, we are proving to be effective as well as targeted in providing clear, concise marketing solutions to the client," he said.

Toor is the author of Get the Word Out!–Marketing to Attract New Business, and has more than 20 years of marketing experience.

He has appeared on ABC News, NBC News and CNN Headline News and has contributed to the Atlanta Journal Constitution, Wall Street Journal, Newsweek, People, New York Times, Rolling Stone, Time and other publications.

While at Sony/Ericcson, he created the first e-commerce initiative of the telecommunications giant.

As director of healthcare marketing for Trion, air quality specialist, he designed programs for Honeywell, Sunbeam, Kenmore and Oreck.

His memberships include the American Marketing Assn., Sales & Marketing Executives Assn., Business Marketing Assn., Southeast Regional Internet Society, and PRSA. www.attentiongroup.com.

FUR IS ‘FUREVER.'
The International Fur Trade Federation is launching a "FurEver" promotional campaign via a six-page advertorial in ten national editions of Vogue and Cosmopolitan (China).

The campaign positions fur as a must-have for young trendy women. Shot by fashion photographer Pamela Hanson, the advertorial seeks to capture the "city chic" energy of fur as it moves from the "catwalk" to real-life situations.

Fur has been on the rise as worldwide sales hit a record $11.3 billion in `03. Sales were up four percent, marking the fifth year of increased sales.

Fashion houses Dolce & Gabbana, Jean Paul Gaultier, Caroline Herrera, Michael Kors, Prada, Lanvin and Louis Vuitton are featured in the IFTF promotion.

The September issue of Vogue in the U.S., U.K., Spain, Germany, France, Italy, Greece, Japan, Korea and Russia carries the advertorial.

The IFTF represents 35 national fur trade associations and groups in 29 countries.

Fran Harrow, of Creative Marketing Plus in New York handles PR for the group.

FRIED SAILS TO WEST MARINE.
Laurie Fried, who was PR director at the National Marine Manufacturers Assn., is now PR/donations director at West Marine Inc., the No. 1 boating supply chain. She began her career at the "Oprah Winfrey Show," and was a founding member of the talk show host's production company, Harpo.
Fried left Winfrey for "The Jerry Springer Show," and then set up a cause-related marketing firm geared to e-commerce companies.

Hunt Shipman, majority staff director for the Senate Committee on Agricultur
e, Nutrition and Forestry, plans to step down in September for an EVP slot overseeing government affairs and communications at the National Food Processors Assn.

Shipman, a former Dept. of Agriculture deputy, has been working on Capitol Hill for 12 years.

Tim Willard, VP of comms. for the NFPA, said the post is new, adding responsibility to a SVP post held until April by Tamara Somerville, who left.


Internet Edition, April 25, 2004 Page 8
    

PR OPINION/ITEMS

 

Our editorial last week saying clients want marketing communications these days and that PR is seen as a function too much focused on press relations drew ten commentaries from readers.

Most agreed with the editorial including Ron Levy, founder of North American Precis Syndicate, who said, "This is one of the best pieces of news for PR in years." Ad costs keep rising while audiences shrink, he said.

Bill Daddi, head of a new marcom firm called "Demand," agreed that PR pros should be more marketing-oriented and said the new firm will emphasize initiating and maintaining a dialogue with the consumer.

Another writer agreed that "PR is part of marketing communications in part because a lot of us are owned by the same few companies [ad conglomerates] but also because our messages must be similar, no matter how differently they are carried out."

"Chicago PR Guy" told us, "I don t know if you re selling out or tuning out. I appreciate your subscriptions must be down and you have a payroll to meet and rent to pay, but to suggest that PR is just `press relations and `nobody uses the term PR anymore is not grounded in reality."

Another, wondering if this was "Back to the Future," noted, "First we had Integrated Marketing Communications" or IMC for short, and then it was Reputation Management. Now we re back to the future with marketing communications."

First of all, we didn t say that PR will completely disappear or PR
is just press relations. PR has acquired such a narrow meaning in corporations that the term is rarely used. Former corporate "PR" pros tell us they have acquired "broader" duties.

As for IMC, that was a case of trying to mix advertising with PR which didn t work any more than oil will mix with water. PR was under the thumb of advertising and was often used as a door-opener for an ad campaign.

Marketing communications should not be a shill for advertising. There may be no paid space and time ads at all.

The big companies don t need to cultivate press relations since they may already get too much coverage. Their PR depts., as IR executive Tim Cost expressed it several years ago, "experience a press call as a drive-by shooting."

Inviting the press into the inner workings of a company is seen as the equivalent of inviting the IRS to audit its books.

Smaller and mid-sized companies, which need press attention, have a hard time getting it because major media won t write about a company below a certain size. Marcom can go directly to target audiences.

The marcom agency "Attention," profiled on page 7, has a raft of services for such companies that "PR" firms must also acquire if they are to survive.

Attention founder Daryl Toor not only belongs to PRSA but to the American Marketing Assn., Sales & Marketing Executives Assn., Business Marketing Assn., and Southeast Internet Society. He "walks the walk" and "talks the talk."

Some of the big PRSA chapters want to decouple the Assembly from APR but are treading very lightly. They know decoupling is the right thing to do but that pushing it too hard could tear the Society apart. APRs, who make up a large part of chapter leadership (one half of chapter presidents and many board members are APR) have threatened to bolt and start their own group. This could decimate chapter leadership ... this situation is like the Gov. James McGreevey mess in New Jersey. The Democrats know he should resign immediately (after revealing he had an affair with a political appointee) but fear that forcing him to do so would cause "a bloodbath," in the words of a party leader. McGreevey allies are threatening to "tell tales" about other Democrats.

The unexplained resignation of Rob Levy as No. 2 staffer at PRSA continues to cause speculation. Some think he left because he expected to take over the COO spot from Catherine Bolton. She had declined up until recently to say whether she would stay on. Then, almost as soon as she was reappointed, Levy left. PRSA insiders said Levy was an articulate and even dominant speaker at meetings and may have been too forceful. He may also have left because of PRSA's finances.

Personnel costs soared 11.3% in the first half to $2.1 million or 40% of revenues of $5.2M. They should be 29% of revenues, according to ASAE stats for groups of this size. Longtime ad director Anne Fetsch may also have left for the same reason. PRSA's new rent is $100K more yearly ... money is so tight at PRSA that it is again charging the press for any functions involving food at its New York annual conference. The opening Sunday night buffet at Lincoln Center will cost a reporter $150 to attend and the awards lunch Monday, $125. Policy was to bar reporters from the Assembly lunch last year (although PRSA relented at the last minute). But reporters will be allowed to attend this year ... Assembly delegates who attend the Saturday Assembly and the conference will be paying well over $2,000. They are charged the $975 member conference rate ($1,275 for non-members) and also must stay two extra nights at a New York hotel ($249 nightly at the Hilton). This hefty tab could easily be cut by putting the Assembly on Monday afternoon and barring the usual 5-6 hours of presentations by national leaders, who could supply texts of their speeches.

-- Jack O'Dwyer


 

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